Billion USD projects such Samsung's in Bac Ninh or the Duyen Hai power plant not only created jobs for thousands of people but also contributed greatly to Vietnam's export value in 2015.
Like previous years, the report on Vietnam's socio-economic situation in 2015 continues to emphasize the huge contribution of the foreign-invested (FDI) sector to the export value of Vietnam.
FDI enterprises exported goods worth $115.1 billion, equivalent to 71% of the total exports of the country in 2015, up 13.8%. The FDI sector's part in Vietnam's exports increased from 41% in 2009 to 71% in 2015.
These numbers are impressive but it reveals a problem: the economy is more and more dependent on FDI enterprises. In other words, the growth momentum of the economy depends heavily on the FDI sector.
The biggest representative is Samsung Group of South Korea. This group alone contributed about $30 billion in the total export value of Vietnam.
As a result, the two provinces hosting Samsung factories – Thai Nguyen and Bac Ninh – are among the top six provinces and cities with the highest import-export turnover in Vietnam, along with HCM City, Hanoi, Binh Duong and Dong Nai.
Imports of the FDI sector in 2015 reached $97.9 billion, accounting for 59.2% of Vietnam's total imports. Overall, in 2015 the FDI sector earned trade surplus of nearly $17.15 billion. Meanwhile, Vietnam's trade deficit in the year is about $3 billion, caused mainly by the trade deficit of local businesses.
On the contrary, domestic enterprises are often inferior in comparison with FDI businesses. They contributed only $47.3 billion in export value, decreased by 3.5% compared to 2014.
Why has this situation happened? FDI companies are taking advantage of the recovery of the economy and Vietnam's incentives for foreign investors.
In addition, a series of trade agreements including free trade agreements (FTA) with the EU, South Korea, the ASEAN Economic Community (AEC) and the upcoming Trans-Pacific Partnership (TPP) are all pushing capital into Vietnam.
It is forecast that Vietnam will be one of the alternative markets that will replace China as the "world factory" in the near future.
Is this a good sign? In the long run, the answer may be no.
The failure of local businesses not only reflects their poorer internal strength but also the imbalance between the support policies of the Vietnamese State for domestic and foreign firms.
According to economic experts, it is dangerous that the State does not have incentive policies for local businesses because the FDI sector exports are unsustainable. It can change very quickly when incentive policies change.
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